Cutting costs, boosting revenue: Incoming Air India CEO reveals his top agenda
Air India’s incoming CEO, Tewolde Gebremariam, plans to reward employees whose ideas deliver measurable savings as he pushes the loss-making airline to improve its finances.
At a town hall on Monday, Gebremariam said Air India needed to increase revenue and control costs to achieve sustainable profitability. External pressures had slowed its path to breaking even, he said, but the airline could not lose focus on financial performance.
“Cost management is not just the responsibility of leadership or the finance function. Every employee can contribute to savings, and those savings add up across an organisation of our scale,” the 61-year-old executive said.STAFF IDEAS, NEW SOURCES OF REVENUE
Gebremariam said Air India planned to introduce programmes to reward ideas that reduce costs or improve operational efficiency. He did not give details of when the programmes would begin or how the rewards would be decided.
The airline is also looking for ways to earn more from its international network, commercial operations and cargo business. Gebremariam said revenue growth and cost control would have to go together.
Air India is examining how to use its aircraft more efficiently and adjust its network and operations. Gebremariam said the airline would continue to expand, but its fleet, network and workforce had to be ready to support that growth.
“Growth is the oxygen of business. But growth must also be profitable and sustainable,” he said.LOSSES AND OPERATING PRESSURES
The message comes as the Tata Group-owned airline faces mounting losses. Air India reported a loss of Rs 22,238 crore in FY26, more than double the Rs 10,859 crore loss recorded a year earlier.
Pakistan’s airspace restrictions have forced its aircraft to take longer routes on some flights to Europe and North America, adding to operating costs. The conflict in West Asia has also disrupted operations and put pressure on fuel costs.
The airline remains under closer regulatory scrutiny following the fatal AI171 crash in Ahmedabad last year. A subsequent DGCA audit flagged safety lapses, adding to the challenges facing its new leadership as Air India continues its fleet and network expansion.GEBREMARIAM’S TURNAROUND RECORD
Gebremariam led Ethiopian Airlines through a period of rapid growth, expanding its fleet, international network and cargo operations.
His experience building the airline is central to Air India’s decision to bring him in as it seeks to expand while improving its financial performance.
He is expected to succeed Campbell Wilson in October, subject to the required security approvals. Wilson has headed Air India since 2022, when the Tata Group took control of the former state-run carrier.- Ends
